On January 1, 2014, Gareld Gorp. {lessor} entered into a noncancellable lease agreement with Odie Corp. (lessee) for machinery which was carried in Garfield's accounting records at $2,255,12llJlJ and had a fair value of $2,4,. Minimum lease payments under the lease agreement, which expires on December 31, 2023, total $3,550,13EIIJ. Payments of $355,DEIIJ are due each January 1. The rst payment was made on January 1, 2(114 when the lease agreement was nalized. The interest rate of 10% which was stipulated in the lease agreement is the implicit rate set by the lessor. The effective interest method is being used. Odie expects the machine to have a tenyear life with no residual value, and be depreciated on a straightline basis. Collectibilityr of the rentals is reasonably assured, and there are no important uncertainties surrounding the costs yet to be incurred by Gareld. Eloth entities are small private corporations that follow ASPE. Instructions a. From the lessee's viewpoint, what kind of lease is the above agreement? From the lessor's viewpoint, what kind of lease is the above agreement? b. Ignoring income taxes, what should be the income reported by Gareld from the lease for calendar 21314? c. Ignoring income taxes, what should be the expenses incurred by Gdie from this lease for the calendar 2D14? d. What journal entries should be recorded by Gdie Corp. on January 1, 2014? e. What journal entries should be recorded by Gareld Gorp. on January 1, 21314